Note 21 – Fair Value Measures

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring a fair value as follows:

Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments;

Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and

Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2025 are:

(In millions)

 

Total

 

 

Level 1

 

 

Level 2(1)

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

19.0

 

 

$

 

 

$

19.0

 

 

$

 

Nonqualified savings plan investments

 

 

59.4

 

 

 

59.4

 

 

 

 

 

 

 

Cash equivalents

 

 

134.0

 

 

 

134.0

 

 

 

 

 

 

 

 

$

212.4

 

 

$

193.4

 

 

$

19.0

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

3.6

 

 

$

 

 

$

3.6

 

 

$

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

Assets and liabilities measured at fair value on a recurring basis as of August 31, 2024 are:

(In millions)

 

Total

 

 

Level 1

 

 

Level 2(1)

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

24.0

 

 

$

 

 

$

24.0

 

 

$

 

Nonqualified savings plan investments

 

 

54.5

 

 

 

54.5

 

 

 

 

 

 

 

Cash equivalents

 

 

195.3

 

 

 

195.3

 

 

 

 

 

 

 

 

$

273.8

 

 

$

249.8

 

 

$

24.0

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

1.4

 

 

$

 

 

$

1.4

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Level 2 assets include derivative financial instruments which are valued based on significant observable inputs. See Note 12 - Derivative Instruments to the Consolidated Financial Statements for further discussion.

Historical Timeline

Fiscal YearFiled
2025Oct 28, 2025Showing above
2024Oct 24, 2024
2023Oct 25, 2023
2022Oct 31, 2022
2021Oct 26, 2021
2020Oct 28, 2020
2019Oct 29, 2019
2018Oct 26, 2018
2017Oct 27, 2017
2016Oct 25, 2016
2015Oct 30, 2015

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.